Raman Suri
ramansuribjp@gmail.com
The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman on Sunday, under Prime Minister Narendra Modi’s leadership is a forward-looking and reform-oriented blueprint that decisively positions India on the path of sustained growth, technological self-reliance and inclusive development. At a time when the global economy is grappling with uncertainty, this budget sends out a strong message of confidence India is ready to lead, innovate and build.
A defining pillar of Budget 2026 is the renewed and expanded thrust on building a domestic semiconductor ecosystem which is critical for electronics, electric vehicles, telecom, defence and digital infrastructure and are central to economic and strategic autonomy. The India Semiconductor Mission 2.0 has received an enhanced outlay of ?40,000 crore, positioning India as a global chip manufacturing and design hub.
Another strategic intervention is the focus on rare earth and critical minerals, which are indispensable for clean energy technologies, EV batteries, advanced electronics and defence manufacturing. Budget 2026 outlines a clear roadmap for exploration, mining, processing and value addition of these materials within the country. Dedicated rare earth corridors and support for public-private partnerships will strengthen India’s resource security and reduce exposure to global disruptions.
The government has once again relied on capital expenditure as the engine of growth, raising capex to a record ?12.2 lakh crore, an increase of nearly 9 per cent over the previous year. This massive investment will accelerate infrastructure development across highways, railways, logistics, urban infrastructure and national waterways. The announcement of new high-speed rail corridors and expansion of multimodal connectivity underscores the government’s commitment to modern, green and efficient transport systems that lower logistics costs and improve competitiveness.
On the taxation front, Budget 2026 delivers significant structural relief. By simplifying tax compliance, expanding technology-driven assessments and reducing litigation, the budget enhances ease of living for individuals and ease of doing business for enterprises. These reforms are particularly beneficial for small taxpayers, professionals, MSMEs and startups. Complementing this is the announcement of a ?10,000 crore SME Growth Fund, aimed at supporting innovation, scaling up enterprises and creating employment.
The budget also reflects fiscal prudence, with the fiscal deficit pegged at 4.3 per cent of GDP, reaffirming the government’s commitment to consolidation without compromising growth. Continued focus on manufacturing, startups, research and development, textiles, biopharma and skilling initiatives ensures that growth is broad-based and employment-oriented.
Equally important is the budget’s emphasis on inclusive development. Higher allocations for education, healthcare, women empowerment and rural development underline the government’s belief that long-term economic strength rests on strong human capital. By aligning welfare with opportunity creation, Budget 2026 strikes a balance between growth and social justice.
For Jammu & Kashmir, the budget’s impact is both direct and indirect. Continued central assistance provides fiscal stability and ensures uninterrupted implementation of development and welfare schemes. The capex-led push will fast-track highways, tunnels and strategic road projects, improving connectivity and economic integration. The announcement of ecologically sustainable mountain and eco-tourism initiatives directly benefits the Union Territory by generating local employment while preserving fragile Himalayan ecosystems.
Simplified taxation, digital governance and national skilling programmes will open new avenues for youth and entrepreneurs, while sustained allocations for security and administration strengthen the stable environment essential for investment and tourism growth. In essence, Budget 2026 is not merely an annual statement of accounts but a strategic blueprint for a Viksit Bharat.
The budget primarily is anchored in three core kartavyas – accelerating and sustaining economic growth, fulfilling aspirations, and ensuring inclusive access to resources and opportunities for every family, community and region. The focus is clearly on long-term structural strength rather than short-term populism. A major pillar of Budget 2026 is national security and infrastructure-led growth. Defence spending has been raised to a record ?7.85 lakh crore, including ?2.19 lakh crore for military modernisation with ?63,733 crore earmarked for aircraft and aero engines, alongside higher allocations for operations and pensions.
Capital expenditure for FY27 has been fixed at ?12.2 lakh crore, reinforcing infrastructure as the engine of growth. Seven high-speed rail corridors, operationalisation of 20 new national waterways, the East Coast Development Corridor, and continued focus on tier-2 and tier-3 cities will boost connectivity, reduce logistics costs and create large-scale employment across regions.
People-centric development remains at the heart of Budget 2026. Customs duty exemption on 17 essential cancer drugs, inclusion of seven additional rare diseases, creation of five regional medical hubs, training of 1.5 lakh caregivers, and expansion of Ayurveda and allied health institutions will significantly improve healthcare access and affordability.
Education and youth empowerment get a major boost with five university townships, one girls’ hostel in every district, new design institutes, skill centres and an education-to-employment standing committee. Farmers, fisherfolk and livestock owners benefit from integrated development of 500 water bodies, fisheries value chains, training of 20,000 veterinarians, animal husbandry subsidies, and targeted support for high-value crops.
With fiscal deficit contained at 4.3 per cent of GDP and debt levels moderating, Budget 2026 balances growth, stability and inclusivity – laying strong foundations for a confident, resilient and future-ready India. In essence, Budget 2026 is a promise to the nation-a promise that India will build with its own hands, innovate with its own minds and secure its future with confidence. It reflects an India that no longer waits for global tides to turn, but charts its own course with strength and resolve. This is the budget of a self-reliant nation rising, united in purpose and certain of its destiny.
(The writer is joint treasurer BJP, Jammu Kashmir)
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